ARTICLE 19 Establishment of Utilization Charges

（1） The Council shall specify the units of measurement for the varioustypes of utilization of the INMARSAT space segment and shall establishcharges for such utilization. These charges shall have the objective ofearning sufficient revenues for the Organization to cover its operating，maintenance and administrative costs， the provision of such operatingfunds as the Council may determine to be necessary， the amortization ofinvestment made by Signatories， and compensation for use of capital inaccordance with the Operating Agreement.

（2） The rates of utilization charge for each type of utilization shallbe the same for all Signatories for that type of utilization.

（3） For entities， other than Signatories， which are authorized inaccordance with Article 7 to utilize the INMARSAT space segment， theCouncil may establish rates of utilization charge different from thoseestablished for Signatories. The rates for each type of utilization shallbe the same for all such entities for that type of utilization.

ARTICLE 20 Procurement

（1） The procurement policy of the Council shall be such as toencourage， in the interests of the Organization， world-wide competition inthe supply of goods and services. To this end：

（a） Procurement of goods and services required by theOrganization， whether by purchase or lease， shall be effected by the awardof contracts， based on responses to open international invitations totender.

（b） Contracts shall be awarded to bidders offering the bestcombination of quality， price and the most favourable delivery time.

（c） If there are bids offering comparable combinations of quality，price and the most favourable delivery time， the Council shall award thecontract so as to give effect to the procurement policy set out above.

（2） In the following cases the requirement of open internationaltender may be dispensed with under procedures adopted by the Council，provided that in so doing the Council shall encourage in the interests ofthe Organization world-wide competition in the supply of goods andservices：

（a） The estimated value of the contract does not exceed 50，000 USdollars and the award of the contract would not by reason of theapplication of the dispensation place a contractor in such a position asto prejudice at some later date the effective exercise by the Council ofthe procurement policy set out above. To the extent justified by changesin world prices， as reflected by relevant price indices， the Council mayrevise the financial limit.

（b） Procurement is required urgently to meet an emergencysituation.

（c） There is only one source of supply to a specification which isnecessary to meet the requirements of the Organization or the sources ofsupply are so severely restricted in number that it would be neitherfeasible nor in the best interest of the Organization to incur theexpenditure and time involved in open international tender， provided thatwhere there is more than one source they will have an opportunity to bidon an equal basis.

（d） The requirement is of an administrative nature for which itwould be neither practicable nor feasible to undertake open internationaltender.

（e） The procurement is for personal services.

ARTICLE 21 Inventions and Technical Information

（1） The Organization， in connexion with any work performed by it or onits behalf at its expense， shall acquire in inventions and technicalinformation those rights， but no more than those rights， which arenecessary in the common interests of the Organization and of theSignatories in their capacity as such. In the case of work done undercontract， any such rights obtained shall be on a non-exclusive basis.

（2） For the purpose of paragraph （1） the Organization， taking intoaccount its principles and objectives and generally accepted industrialpractices， shall， in connexion with such work involving a significantelement of study， research or development ensure for itself：

（a） The right to have disclosed to it without payment allinventions and technical information generated by such work.

（b） The right to disclose and to have disclosed to Parties andSignatories and others within the jurisdiction of any Party suchinventions and technical information， and to use and to authorize and tohave authorized Parties and Signatories and such others to use suchinventions and technical information without payment in connexion with theINMARSAT space segment and any earth station on land or ship stationoperating in conjunction therewith.

（3） In the case of work done under contract， ownership of the rightsin inventions and technical information generated under the contract shallbe retained by the contractor.

（4） The Organization shall also ensure for itself the right， on fairand reasonable terms and conditions， to use and to have used inventionsand technical information directly utilized in the execution of workperformed on its behalf but not included in paragraph （2）， to the extentthat such use is necessary for the reconstruction or modification of anyproduct actually delivered under a contract financed by the Organization，and to the extent that the person who has performed such work is entitledto grant such right.

（5） The Council may in individual cases approve a deviation from thepolicies prescribed in paragraphs （2） （b） and （4）， where in the course ofnegotiation it is demonstrated to the Council that failure to deviatewould be detrimental to the interests of the Organization.

（6） The Council may also， in individual cases where exceptionalcircumstances warrant， approve a deviation from the policy prescribed inparagraph （3） where all the following conditions are met：

（a） It is demonstrated to the Council that failure to deviatewould be detrimental to the interests of the Organization.

（b） The Council determines that the Organization should be able toensure patent protection in any country.

（c） Where， and to the extent that， the contractor is unable orunwilling to ensure such patent protection within the time required.

（7） With respect to inventions and technical information in whichrights are acquired by the Organization otherwise than pursuant toparagraph （2）， the Organization， to the extent that it has the right todo so， shall upon request：

（a） Disclose or have disclosed such inventions and technicalinformation to any Party or Signatory subject to reimbursement of anypayment made by or required of the Organization in respect of the exerciseto this right of disclosure.

（b） Make available to any Party or Signatory the right to discloseor have disclosed to others within the jurisdiction of any Party and touse and to authorize and to have authorized such others to use suchinventions and technical information：

（i） Without payment in connexion with the INMARSAT spacesegment or any earth station on land or ship operating in conjunctiontherewith.

（ii） For any other purpose， on fair and reasonable terms andconditions to be settled between Signatories or others within thejurisdiction of any Party and the Organization or the owner of theinventions and technical information or any other authorized entity orperson having a property interest therein， and subject to reimbursement ofany payment made by or required of the Organization in respect of theexercise of these rights.

（8） The disclosure and use， and the terms and conditions of disclosureand use， of all inventions and technical information in which theOrganization has acquired any rights shall be on a non-discriminatorybasis with respect to all Signatories and others within the jurisdictionof Parties.

（9） Nothing in this Article shall preclude the Organization， ifdesirable， from entering into contracts with persons subject to domesticlaws and regulations relating to the disclosure of technical information.

ARTICLE 22 Liability

Parties are not， in their capacity as such， liable for the acts andobligations of the Organization， except in relation to non-Parties ornatural or juridical persons they might represent in so far as suchliability may follow from treaties in force between the Party and thenon-Party concerned. However， the foregoing does not preclude a Partywhich has been required to pay compensation under such a treaty to anon-Party or to a natural or juridical person it might represent frominvoking any rights it may have under that treaty against any other Party.

ARTICLE 23 Excluded Costs

Taxes on income derived from the Organization by any of theSignatories shall not form part of the costs of the Organization.

ARTICLE 24 Audit

The accounts of the Organization shall be audited annually by anindependent Auditor appointed by the Council. Any Party or Signatory shallhave the right to inspect the accounts of the Organization.

ARTICLE 25 Legal Personality

The Organization shall have legal personality and shall be responsiblefor its acts and obligations. For the purpose of its proper functioning，it shall， in particular， have the capacity to contract， to acquire，lease， hold and dispose of movable and immovable property， to be a partyto legal proceedings and to conclude agreements with States orinternational organizations.

ARTICLE 26 Privileges and Immunities

（1） Within the scope of activities authorized by this Convention， theOrganization and its property shall be exempt in all States Parties tothis Convention from all national income and direct national propertytaxation and from customs duties on communication satellites andcomponents and parts for such satellites to be launched for use in theINMARSAT space segment. Each Party undertakes to use its best endeavoursto bring about， in accordance with the applicable domestic procedure， suchfurther exemption from income and direct property taxation and customsduties as is desirable， bearing in mind the particular nature of theOrganization.

（2） All Signatories acting in their capacity as such， except theSignatory designated by the Party in whose territory the headquarters islocated， shall be exempt from national taxation on income earned from theOrganization in the territory of that Party.

（3） （a） As soon as possible after the entry into force of thisConvention， the Organization shall conclude， with any Party in whoseterritory the Organization establishes its headquarters， other offices orinstallations， an agreement to be negotiated by the Council and approvedby the Assembly， relating to the privileges and immunities of theOrganization， its Director General， its staff， of experts performingmissions for the Organization and of representatives of Parties andSignatories whilst in the territory of the host Government for the purposeof exercising their functions.

（b） The agreement shall be independent of this Convention andshall terminate by agreement between the host Government and theOrganization or if the headquarters of the Organization are moved from theterritory of the host Government.

（4） All Parties other than a Party which has concluded an agreementreferred to in paragraph （3） shall as soon as possible after the entryinto force of this Convention conclude a Protocol on the privileges andimmunities of the Organization， its Director General， its staff， ofexperts performing missions for the Organization and of representatives ofParties and Signatories whilst in the territory of Parties for thepurposes of exercising their functions. The Protocol shall be independentof this Convention and shall prescribe the conditions for its termination.

ARTICLE 27 Relationship with other International Organizations

The Organization shall co-operate with the United Nations and itsbodies dealing with the Peaceful Uses of Outer Space and Ocean Area， itsSpecialized Agencies， as well as other international organizations， onmatters of common interest. In Particular the Organization shall take intoaccount the relevant Resolutions and Recommendations of theInter-Governmental Maritime Consultative Organization. The Organizationshall observe the relevant provisions of the InternationalTelecommunication Convention and regulations made thereunder， and shall inthe design， development， construction and establishment of the INMARSATspace segment and in the procedures established for regulating theoperation of the INMARSAT space segment and of earth stations give dueconsideration to the relevant Resolutions， Recommendations and proceduresof the organs of the International Telecommunication Union.

ARTICLE 28 Notification to the International TelecommunicationUnion

Upon request from the Organization， the Party in whose territory theHeadquarters of the Organization is located shall co-ordinate thefrequencies to be used for the space segment and shall， on behalf of eachParty that consents， notify the International Telecommunication Union ofthe frequencies to be so used and other information， as provided for inthe Radio Regulations annexed to the International TelecommunicationConvention.

ARTICLE 29 Withdrawal

（1） Any Party or Signatory may by written notification to theDepositary withdraw voluntarily from the Organization at any time. Once adecision has been made under applicable domestic law that a Signatory maywithdraw， notice of the withdrawal shall be given in writing to theDepositary by the Party which has designated the Signatory， and thenotification shall signify the acceptance by the Party of the withdrawal.Withdrawal of a Party， in its capacity as such， shall entail thesimultaneous withdrawal of any Signatory designated by the Party or of theParty in its capacity as Signatory， as the case may be.

（2） Upon receipt by the Depositary of a notice to withdraw， the Partygiving notice and any Signatory which it has designated， or the Signatoryin respect of which notice has been given， as the case may be， shallcease to have any rights of representation and any voting rights in anyorgan of the Organization and shall incur no obligation after the date ofsuch receipt. However， a withdrawing Signatory shall remain responsible，unless otherwise decided by the Council pursuant to Article XIII of theOperating Agreement， for contributing its share of the capitalcontributions necessary to meet contractual commitments specificallyauthorized by the Organization before the receipt and liabilities arisingfrom acts or omissions before the receipt. Except with respect to suchcapital contributions and except with respect to Article 31 of thisConvention and Article XVI of the Operating Agreement， withdrawal shallbecome effective and this Convention and/or the Operating Agreement shallcease to be in force for the Party and/or Signatory three months after thedate of receipt by the Depositary of the written notification referred toin paragraph （1）。

（3） If a Signatory withdraws， the Party which designated it shall，before the effective date of withdrawal and with effect from that date，designate a new Signatory， assume the capacity of a Signatory inaccordance with paragraph （4）， or withdraw. If the Party has not acted bythe effective date， it shall be considered to have withdrawn as from thatdate. Any new Signatory shall be responsible for all the outstandingcapital contributions of the previous signatory and for the proportionateshare of any capital contributions necessary to meet contractualcommitments specifically authorized by the Organization， and liabilitiesarising from acts or omissions， after the date of receipt of the notice.

（4） If for any reason a Party desires to substitute itself for itsdesignated Signatory or to designate a new Signatory， it shall givewritten notice to the Depositary. Upon assumption by the new Signatory ofall the outstanding obligations， as specified in the last sentence ofparagraph （3）， of the previously designated Signatory and upon signatureof the Operating Agreement， that Agreement shall enter into force for thenew Signatory and shall cease to be in force for the previous Signatory.

ARTICLE 30 Suspension and Termination

（1） Not less than one year after the Directorate has received writtennotice that a Party appears to have failed to comply with any obligationunder this Convention， the Assembly， after considering any representationsmade by the Party， may decide， if it finds that the failure to comply hasin fact occurred and that such failure impairs the effective operation ofthe Organization， that the membership of the Party is terminated. ThisConvention shall cease to be in force for the Party as from the date ofthe decision or at such later date as the Assembly may determine. Anextraordinary session of the Assembly may be convened for this purpose.The termination shall entail the simultaneous withdrawal of any Signatorydesignated by the Party or of the Party in its capacity as Signatory， asthe case may be. The Operating Agreement shall cease to be in force forthe Signatory on the date on which this Convention ceases to be in forcefor the Party concerned， except with respect to capital contributionsnecessary to meet contractual commitments specifically authorized by theOrganization before the termination and liabilities arising from acts oromissions before the termination， and except with respect to Article 31 ofthis Convention and Article XVI of the Operating Agreement.

（2） If any Signatory， in its capacity as such， fails to comply withany obligation under this Convention or the Operating Agreement， otherthan obligations under Article III （1） of the Operating Agreement and thefailure has not been remedied within three months after the Signatory hasbeen notified in writing of a resolution of the Council taking note of thefailure to comply， the Council， after considering any representations madeby the Signatory and， if applicable， the Party concerned may suspend therights of the Signatory. If， after an additional three months and afterconsideration of any representations made by the Signatory and， ifapplicable， the Party， the Council finds that the failure to comply hasnot been remedied， the Assembly may decide on the recommendation of theCouncil that the membership of the Signatory is terminated. Upon the dateof such decision， the termination shall become effective and the OperatingAgreement shall cease to be in force for that Signatory.

（3） If any Signatory fails to pay any amount due from it pursuant toArticle III （1） of the Operating Agreement within four months after thepayment has become due， the rights of the Signatory under this Conventionand the Operating Agreement shall be automatically suspended. If withinthree months after the suspension the Signatory has not paid all sums dueor the Party which has designated it has not made a substitution pursuantto Article 29 （4）， the Council after considering any representations madeby the Signatory or by the Party which has designated it， may decide thatthe membership of the Signatory is terminated. From the date of suchdecision， the Operating Agreement shall cease to be in force for theSignatory.

（4） During the period of suspension of the rights of a Signatorypursuant to paragraphs （2） or （3）， the Signatory shall continue to haveall the obligations of a Signatory under this Convention and the OperatingAgreement.

（5） A Signatory shall incur no obligation after termination， exceptthat it shall be responsible for contributing its share of the capitalcontributions necessary to meet contractual commitments specificallyauthorized before the termination and liabilities arising from acts oromissions before the termination， and except with respect to Article 31 ofthis Convention and Article XVI of the Operating Agreement.

（6） If the membership of a Signatory is terminated， the Party whichdesignated it shall， within three months from the date of the terminationand with effect from that date， designate a new Signatory， assume thecapacity of a Signatory in accordance with Article 29 （4）， or withdraw. Ifthe Party has not acted by the end of that period， it shall be consideredto have withdrawn as from the date of termination， and this Conventionshall cease to be in force for the Party as from that date.

（7） Whenever this Convention has ceased to be in force for a Party，settlement between the Organization and any Signatory designated by thatParty or that Party in its capacity as Signatory， shall be accomplishedas provided in Article XIII of the Operating Agreement